Smart Portfolio Investment Tips

by Minority Fortune

Sudhir Jain is a retired oil industry consultant with a background in investing. He recently was interviewed by Globe and Mail and offered some wonderful portfolio investment tips. We thought we’d share.

4 Ways to Keep your Portfolio Great:

1. Keep your investments to a controllable number. For Mr. Jain, he has learned that he can only manage 30-35 companies at a time in his portfolio. Keep in mind that he’s a professional. For a starter, we’d cut that amount by a third.
2. Group your stocks by categories. Maybe you could break your categories down to the following: “super safe”, “short return”, and “high risk” stocks.
3. Look at the details. Check the balance sheet to ensure that the debt isn’t too high of a proportion to the revenue status. The company’s market cap should be in close relation to its annual revenues. Finally, the company should have capable, strong management and leadership.
4. Keep an eye on your money. Jain notes that one must “change with the times”. So true. Therefore, it’s important to monitor all aspects of your investments from time to time.

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